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BOMBAY STOCK EXCHANGE LIMITED NATIONAL STOCK EXCHANGE OF PHIROZE JEEJEEBHOY TOWERS INDIA LIMITED DALAL STREET "EXCHANGE PLAZA" MUMBAI - 400001 BANDRA KURLA COMPLEX

BANDRA (E) MUMBAI - 400051

Scrip Code: 522074 Scrip Code: ELGIEQUIP

E:SEC: 1027 DATE: 27/02/2020

Dear Sirs

Sub: Submission of presentation made at the Analysts / Investors Meet on 27/02/2020 as per Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulation - 2015 - reg.

The presentation made at the Analysts/ Investors Meet on 27/02/2020.

Kindly acknowledge the receipt and do the needful to update your records.

Thanking you,

Yours faithfully, For ELf ;1 EQUIPMENTS LIMITED

~v1 SHY AM VASUDEVAN COMPLIANCE OFFICER

Encl: As above.

ELGI EQUIPMENTS LIMITED frlchy Rood, Singonollur, Coimbatore - 61.11005, Tomllnodu, Indio

T ! +91422 2589 555, W :www.elgi.com, Toll - f ree No : 1800-425·3544, CIN : L29120TZ1960PLC00035l

Thursday

27 February, 2020

Analysts and

Investors Meet

-· ..... . l:LL:11"" Always Better:

Group History

Sons of LRG Naidu who moved the business from services into manufacturing in 1959 and built a group that is today over $500 Million in revenue

• Born in 1894

• Worked as a ticket collector

• Started a bus company in 1918

• Built a fleet of 300 buses

• Started two airline companies in 1946

• All the businesses were nationalized between 1948 and 1960

LRG Naidu Founder

The Next Generation

LG Balakrishnan LG Varadaraj LG Ramamurthi LG Nityanand

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ELGi Leadership

Srirom Srini¥Oi. Oirt:~lOf" - OP"f"UliOl'I"

V fl4J ModhCJV l)i~lQr-T hn(>los,11

Dr. lairom V<Jradoroj Managing Olrectot'

RojC'.5h Pr-emchonc:lron DirtN:"lor - I SAAME

Rtnne_sti POMUswaml ecutfv o lre<;tor - co l::A, .b.TS -· .... I:: LI.I 1.

4

Global Presence

00+ Countries where ELGi does busine s

0 Countries with dir ct pr s nc

M nufact uring countrie

Presence

200 800 1200 1500 Ol rlbu ors S l p opl S rvic p opl mploy s worldwide worldwide worldwid worldwid

. ,, ✓ ..

Infrastructure

,000,000 ,000,000 100 000 S I r f of facto y Squar off. ory land worldwid spa wo ldwid worldwid

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Manufacturing Capability

Trademarks of companies acknowledged

>5 million sq ft of "Future-ready" manufacturing facilities

ELGi's Globally renowned vendors

•<· ? 'l I l-H•illll

elrln kllnser

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6

Comprehensive Portfolio

Air compressors across the spectrum

~ S ries

~ Encapsulated Saew Afr Compre or 2.2 7 It / 8 - 4 !CF

ITW G res

~ Oil Lubrlcc1Le-d serew Air Compres.sor ll - 250 W,' 47 - l6UCF

[@] OF S ries

~ Oil r Screw r Compre~sor 90 UOltW / 57 40 M

[!iJ CGS ies

~ Centrlfu al Compressor 450 - 930 kW / 3000 - U00 CFM

For all industries and applications

Automotive Textlles Pharma Rice and Pulse

di IE Manufacturing Oil& Gas Iron & Steel Mining

Oil lubric t d Recip 011 ubrlcated Piston Compressor t .O 40 P / l .O 1 cSC M

Oil Free Rec1p O I Free Prston Compressor 1.0 - 75 HP / 1.1 - 300 CFM

PG Se (Et c rfc) El trlc Portabl Screw Compressor l2 - 7SkW/131 5l'ICFM

PG Se . s (Di s l)

Dies.el P<lw ret:I Screw Compr sor 175 -1500 CFM / 100 • 4100 PSI

..

Leather

rr. I Nuclear Plant Electrical

. • I

Complete end-to-end solutions and accessories

Dryer Down e Filt rs

Or inV lv

Healthcare lectronrcs Paper

Aviation Railways Constructlon

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Vision and Brand Promise

SOC E

VISION

Always be the choice everywhere

BRAND PROMISE

" Always Better"

DIS IBUTO S

ov s

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8

Select Customers - India

Auto

Pharma

Cement

Iron and steel

FMCG

Plastics and Leather

Other

~ ~ ~~--J ~ r.::::i ~ _ e71AMCO;· ~-™~ ~ ~ ~ ~ ~ L____j c•.--~• ... Gt ~ ~

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9

Select Customers - Global

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| CONFIDENTIAL | for internal circulation only Thursday, February 27, 2020 10

KEY UPDATES

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DEMING PRIZE

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23rd

Jun’16

Communication to Ando san on our

willingness to challenge Deming

4th

Apr’16

Ando san discussion with

MD about challenging

Deming prize

First discussion on Deming exam in

Steering committee meeting6th

Jun’16

1st

Oct'19ELGi won

The Deming Prize

ELGi’s Journey to Deming Prize

28th

Sep’16

Communication to JUSE

3rd

Nov’17

Application submission for TQM

diagnosis

19th

May’17

Preparation meeting for TQM

diagnosis

15th

Jun’18

DTQMP submission - TQM

diagnosis

TQM Diagnosis by Deming

committee24-26

July’18

30th

Aug’18 TQM diagnosis report

7th

Feb'19Application submission for Deming

exam

4th

Apr'19DTQMP submission - Deming Exam

30th

Jun'19Preparation meeting

for Deming exam

26-28

Aug'19Deming exam

Commitment and collaboration across organization over 3.5 years

Patented Design

Oil Free Disrupted - AB Series

Pressure up to 14 bar(g)

Higher Efficiency & Reliability

Single Stage Compression

Quieter

Quality of compressed air -Class “0” ISO 8573-1

Inbuilt Water replenishment system

No top-up water

No Corrosion Possibility

Inbuilt microbial inhibition system

ISO 8573-7 Certified

Lowest life cycle cost

Drinking Water QualityMeets IS10500

[ [ J

[

[ .._

./

[ J [ J

[ J [ J -· --- ■ t:LUI.

CII DESIGN EXCELLENCE AWARD

AB SERIES GLOBAL LAUNCH

CUSTOMER LIST

60+ orders, F&B, Pharma, Electronics, Auto etc

Oil Free Disrupted - AB Series

I r·I· AU RE A

, ':U4'\IJ

v :::s rroc: .. ,, .... "'.

won the

in the c t Industrial D _a egory of es,gn: Capital G oods

EDICEF/ ,.HAltllA __ _.

QualcoNM

lazuline

JUBIIANT G N RI S

Syngene

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Piston Compressor – LD Series

Simplex3, 5 & 7.5 hP

Duplex10 (2*5) & 15 (2*7.5) hP

Existing New

Traditional Design Upgraded Design (Jan 2020)

• Standalone motor, compressor and fan driven by belts

• Mechanical controlled compressor operation

• Can be easily copied

• Integrated motor, compressor, fan

• Electronic control, zero downtime

• Difficult to replicate

• Efficient, compact, quieter

ELGi ID 5 D

I m ,n,

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Motor Plant

Total Investment – INR 182 Mn

Of which, till date – INR 133 Mn

Prod. commenced – Oct 2019

Employees – 22

17

Europe Expansion

Planned Headcount

Phase 1 : 55

Estimated by March : 36

Headquarters in Waterloo, Brussels

18

Michigan Air Acquisition (Dec 2019)

Located in Detroit, key geographical area identified in Project Nexus

Distributor & specialist in maintenance / service: consistent with company’s strategy

Michigan 4th largest US market for ELGi’s product segment

Acquisition adds an important geography and provides scale synergies

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| CONFIDENTIAL | for internal circulation only Thursday, February 27, 2020 19

FINANCIALS

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| CONFIDENTIAL | for internal circulation only

20

Revenue Mix

Revenue

Compressors

(90%)

[PY – 90%]

India

(53%)

[PY – 56%]

ROW

(47%)

[PY – 44%]

Auto Equipments

(10%)

[PY – 10%]

ISAAME

60%

COSEA

8%

AMERICAS

23%

EUROPE

8%

SALES 2019-20E

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| CONFIDENTIAL | for internal circulation only

21

Sales Performance (INR Mn)

6,950 7,096 8,042

9,100 9,250 8,800

5,637 5,033

6,162

7,400 7,488 7,770 1,421 1,572

1,849

1,950 1,897 1,830

2015-16 2016-17 2017-18 2018-19 E 2018-19 A 2019-20 E

Compressors - India

Compressors - ROW

Auto Equipments

14,008 13,701

16,053

18,450 18,635 18,400

■

ii

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| CONFIDENTIAL | for internal circulation only

22

India Sales Vs. Capital Goods IIP Growth(Impact of GTM Initiatives)

• Before GTM, India sales closely tracked capital goods IIP both directionally as well as in terms of growth rates

• Post GTM, India sales track capital goods IIP directionally, but sales growth rate at a premium to, and relatively insulated from recent de-growth in, capital goods IIP

60

80

100

120

140

FY14 FY15 FY16 FY17 FY18 FY19 FY20

India Sales CG IP

-----------------------------­',,,,,,,,

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23

Qualitative Comments – India

• Current economic slowdown* and delay in government finance clearances have impacted business, but mitigated by

• Serving diversified industry segments

• Introduction of new products

• Increased market focus

What we said Status & Actions

• Registering impressive growth overall in most segments

• Facing softening demand in one segment

* Capital Goods IIP YTD Dec growth: - 12%

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24

Qualitative Comments – Europe

• Leadership hiring completed

• Recruitment of next level regional sales and service organizations progressing as per plan

• Mid term business plan completed

• Rotair’s performance remains stable

• ELGi’s value proposition well embraced by dealers

What we said Status & Actions

• Hired leadership positions in Europe to accelerate investments and expand footprint

• Rotaircontinues to do very well in developing market for ELGi products in Italy

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25

Qualitative Comments – USA

What we said

• Crossed installed base milestone: 3000 machines

• Number of distributors increased by 10% helping increase geographic coverage and growth. Initiated GTM project in USA to accelerate top line

• Installed base has grown to 4000+ machines

• Organic Initiatives

• Own distribution branch & regional warehouse in LA, California to enter top 3 US markets

• Established a JV for distribution in Seattle, Washington. In the process of expanding this model in other geographies

• Inorganic Initiatives

• Shift from distributor to direct on portables

• Acquired Michigan Air Solutions

Status & Actions

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26

Global Market Outlook

INDIA

• Cautious outlook as we wait for manufacturing activity to stabilize and start improving

• India GDP growth expected to remain subdued for 2020-21, with possible uptick in second half

EUROPE

• Europe economy seeing offsetting forces and expected to have subdued growth

• GDP growth is expected to remain stable for 2020-21

• Impact of Brexitto be evaluated

USA

• Moderate growth expected based on leading indicators including global trade uncertainties

• Election year dynamics expected to negatively impact capital expenditures due to “wait and watch” approach

AUSTRALIA

• Sluggish economic outlook: growth has recently slowed, stricter lending laws to constrain credit

• Barring mining, most of the sectors are slowing down

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1,112 1,121

1,313 1,390 1,447

1,296

71 199

297

340 324

306

117

91

151

170 158

128

-298

2015-16 2016-17 2017-18 2018-19 E 2018-19 A 2019-20 E

India standalone

Foreign subsidiaries

Auto equipments

Europe expansion

1,411

1,761

27

EBITDA (INR Mn)

1,300

1,900 1,929

1,431■

■ -

ELG i.

28

EBIDTA BRIDGE (INR Mn)

Contribution %

160

Fixed Cost

(7)

Incremental

profit -Pulford

67

Europe

Expansion (298)

Volume

(419)

EBITDA

2019-20 E

1,431

EBITDA

2018-19 A

1,929

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| CONFIDENTIAL | for internal circulation only

29

Net Debt Position (INR Mn)

2,884

2,179

1,455 1,572

1,151

2,468

Mar 2015 Mar 2016 Mar 2017 Mar 2018 Mar 2019 Dec 2019

Acquisitions : ~ 1,000

Working Capital : ~ 300

Strategic Debt – 1,680

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30

Net Debt Position (INR Mn)

* net of dividend

Apr - Sep

2018

Oct - Mar

2019

Apr - Dec

2019Total

Opening Debt

Closing Debt

Cash Profit*

Working Capital

Acquisitions

Capex

322

526

1,572

406

2,242 1,151

2,242 1,151 2,468

844

560

584

478

993

1834

240

1,519

228 313 430 971

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31

Feedback from the Analysts and Investors Meet 2019

Not agreedAgreed

# Feedback from the Analysts & Investors ELGi’s response

1. Would like to have more details and time for assembly plant tour.

We have provided 2 hours for factory tour last year. This can be increased to 3 hours this year.

2. The focus on future outlook need not discuss the exact financials. The forecast is a function of so many things, beyond your control that the discussion on financial projections is not useful.

Numbers shown are an aspiration / target set by the company for the near to mid term. However, understandably, these numbers are subject to various factors both external and internal.

3. Plan the conference in Mumbai. We prefer Coimbatore to be more convenient for factory tour arrangements, showcasing our products, and for better understanding of the business model. Moreover, for the last couple of years, we received good response from the analysts and investors across India from leading firms for the event in Coimbatore.

4. A brief film (in each factory) will enhance understanding prior to the actual plant visit.

Will be presented from next year

5. Show the actual deviations from your previous targets with reasons.

Presented

6. Country and market share wise estimate of growth be provided.

We have communicated in analysts calls that such market share data is not available

7. Please attend investor conference (organised by analysts/investors).

We can consider this as appropriate.

8. Start disclosing Elgi sales outside India, every quarter for investors to appreciate the traction company is getting.

We are disclosing revenue mix on an annual basis for India and ROW and would like to continue the same

Feedback from the Analysts Meet 2019

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Thank You